The following information relates to Questions 1 and 2, You have been approached by a Multi-National Corporation based in Johannesburg to help with managing their transaction exposure. They present you with the following information: Tables A and B: Income and Expenses EXPENSES PAYABLE DAYS SPOT RATE FUTURES RATE INCOME $350 000 150 RECEIVABLE DAYS € 750 000 120 R 14.80 R16.50 SPOT RATE R16.50 FUTURES RATE R18.20 Table C: Country Specific deposit and borrowing annual rates COUNTRY DEPOSIT LOAN EU 5.90% 5.72% USA 6.35% 6.63% RSA 8.15% 7.50% Table D: Option Pricing for the ZAR/US$ OPTION: ZAR/US$ PUT CALL EXERCISE PRICE PREMIUM R15.60 RO.50 R15.40 RO.45 Table E: Option Pricing for the ZAR/€ OPTION: ZAR/€ PUT CALL EXERCISE PRICE PREMIUM R17.80 R0.40 R17.50 R0.46 Tables F and G: Probability Distribution for US Dollar and Euro ZAR/US$ PROBABILITY R15.00 40% R15.60 25% R16.10 35% ZAR/€ PROBABILITY R17.10 30% R17.90 45% R18.50 25% 1. The real cost of hedging using the Money Market Hedge for Receivables is closest to? A. R362 936.47 B. R888 657.08 C. R921 929.24 D. - R399 537.52 E. None of the above 2. The effective rate for the Option Hedge for Payables is closest to? A. R 17.62 B. R 15.86 C. R 15.69 D. R 15.24 E. None of the above 2